I can help you with stock chart reading

vvonteru · #**971** 4th September 2006, 01:38 AM

Quote:

Originally Posted by GKHERA99

Vv
Advise On Hanil Era Textile And Alok Textile
Regards

Hanil Era Textile
-- Wait for the crossover test. Touching 50 day EMA and coming down does not portray bullishness in stock. It should go above the 50 day EMA to certify its uptrend.

Alok Textile
-- Recent volume is good. Recently it has been trading sideways. I would stand aside from TA perspective, unless U see changes to the sideways action.

rangarajan · #**972** 4th September 2006, 08:52 AM

dear VV,
ICSA & Ankur,graphs attached

vvonteru · #**973** 4th September 2006, 09:36 AM

Quote:

Originally Posted by rangarajan

dear VV,
ICSA & Ankur,graphs attached

I see the difference between mine and theirs. They are going in detail. I just eye ball the chart. I am looking for easy ones. How about this. Look at the stock chart I recently suggested: Godrej Industries. Compare that chart to these charts. Reading their analysis looks convincing. But, I think the charts (ICSA) are not. Ankur is good as long as the stock clears the pull back.

My criteria for stock is based on KISS methodology. Keep It Simple Stupid. Why? because U want to repeat the process. If U can't repeat the process, probability will not work for U. Having such a detailed analysis will make it hard to repeat the process.

Another thing I noted from their analysis is they use Weekly charts. That kind of takes out the noise in daily charts. Its good and bad based on what time frame U base your decisions on. So far, how did they work out for U. Do they give help on position and stop loss management.

kumar7 · #**974** 4th September 2006, 10:57 AM

Dear VV,

Gitanjali Gem looks strong on charts, I've some stocks; can you compare it with Classic Diamonds?

Rajesh Exports (last year was spectacular for the stock) is weaker on charts(above 50 day EMA though), but I think it will become interesting only after it crosses 200-213 convincingly; I have already entered the stock to catch the inevitable appreciation because of approaching diwali season.

Can you, please, give your take on it.

Thanks,
Kumar

GKHERA99 · #**975** 4th September 2006, 03:25 PM

Vv,
Views Valecha Engineering,gupta Synthetics,elnet Technology
Regards

vvonteru · #**976** 4th September 2006, 08:39 PM

Quote:

Originally Posted by kumar7

Dear VV,

Gitanjali Gem looks strong on charts, I've some stocks; can you compare it with Classic Diamonds?

I observed that stocks kind of go in 3 stages. Most of the time, at the 3rd stage, they cannot keep up the previous momentum (buyers don't want to buy so high and sellers had enough profit) and either correct or go sideways before they continue up. Thats what is happening to CLASSIC and so many stocks. What are our options if we are already in the stock.

1. Stay in the stock till its corrected.
2. Use MACD cross down to get out of the stock. Get back in after MACD cross up.

I don't need to tell U that the options will have different results. Try to follow only 1 option all the time.

Gitanjali looks very good. Its in the second stage.

Quote:

Rajesh Exports (last year was spectacular for the stock) is weaker on charts(above 50 day EMA though), but I think it will become interesting only after it crosses 200-213 convincingly; I have already entered the stock to catch the inevitable appreciation because of approaching diwali season.

Can you, please, give your take on it.

Thanks,
Kumar

I am positive about the stock. Compare the volume in July when it reached 200 versus now. Stock has prospects.

U are picking good stocks. Thanks for sharing. Let us know how U are coming up with these stocks to help others.

Quote:

Valecha Engineering,gupta Synthetics,elnet Technology

Valecha Engineering
-- I will wait on this till crosses 200 and then pulls back. Wait for crossover test.

gupta Synthetics
-- Have patience with this stock. The pull backs are going sideways. Use MACD cross up to time the entry from the sideways action.

elnet Technology
--Avoid. Low volume and Not great price action. After the fall in May, this stock didn't move out of the Rs20 range. Unless it moves above 80 successfully and pulls back.

rangarajan · #**977** 4th September 2006, 10:01 PM

Well said VV.No,they never suggest S/L or position mgt & it is upto you.By & large,in the last two years,their picks had given 40% returns on medium term time frame(5-8 months) 0n 60% of their recomm,outwitting the losses.you require patience & confidence in them.
As for Icsa & Ankur,they had given >60% returns & are good for trading also.
ranga

rohit876 · #**978** 5th September 2006, 02:24 AM

Dear VV.

Tata Tea is looking good for shorting.. The MACD is showing a negative divergence..snd the 200 day EMA is acting as a solid support once below it can go down majorly...

Furthermore, Satyam Comp is looking good for a long position(Pullback strategy)

Pls comment

Regard
Rohit

vvonteru · #**979** 5th September 2006, 04:08 AM

Quote:

Originally Posted by rohit876

Dear VV.

Tata Tea is looking good for shorting.. The MACD is showing a negative divergence..snd the 200 day EMA is acting as a solid support once below it can go down majorly...

I don't know if its the right time to short. Indexes had a good day on Monday. So far they are going up, why really short. Unless U want to use overbought conditions in indexes and short them. At this point of time, resist shorting individual stocks. U should have plenty of stocks to fill your portfolio on the long side. Pick one from each sector.

Reading indicators is tricky as they don't work all the time. MACD does not work if the stock is going sideways. It shows negative histogram and crosses down. Nothing bad at that point. Can go bad or the stock may resume the trend. Don't make a decision using just MACD if the stock is going sideways. MACD is a trend following indicator.

Quote:

Furthermore, Satyam Comp is looking good for a long position(Pullback strategy)

Pls comment

Regard
Rohit

I like SatyamComp. I resisted from suggesting because of the volume. Volume has been decreasing for the recent uptrend from July.

chachi · #**980** 5th September 2006, 11:54 AM

Hello VV,

Please have a look at ERACONS (Era Construction). Seems to have been making nice progress. In the past it has attempted 3 times to break the 300 barrier. Chart attached. Today it started gap up and quoting at about 314, near its upper circuit. Construction shares had a nice run yesterday, and seems to be catching the other sectors. I like to have your views on it.

Also please give your views on HCC (Hindustan Construction)

Regards
Chachi

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